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WADCO NEWS 



Volume 2 



Plainville, Mass., February 25, 1921 



Number 4 



The Federal Income Tax 



It has oeciirred to us tliat at this 
particular time, while you and I are 
searching our minds for the solution 
of the tax problem, it might be well 
to review, in a general manner, the 
history and inception of. the income 
tax and discuss the different methods 

The purpose of this article is not 
what to do, nor how to do it, but 
rather to acquaint you with the evo- 
lution of the income tax laws. 

From our vai'icd experience with 
this uncertain problem we find that 
very seldom do the same technicalities 
arise in any two tax returns and to 
tell you how to prepare your particu- 
lar paper would take volumes of quo- 
tations from different decisions ren- 
dered on similar returns and peculiar- 
ities, and even then yon would prob- 
ably have to submit your case to a 
specialist to be analysed. Not only 
that, but these same specialists, men, 
of great experience and study on this 
subject very often vary in their con- 
ception of the applications of the dif- 
ferent clauses contained in the income- 
tax law. In face of this, we would 
hardly wish to take the responsibility 
of advising through this article. 

The Income Tax law may be traced 
back to the days of the Civil War, 
when on August 5, 1861, Congress 
pased an act levying a tax of 3 per 
cent, on all incomes in excess of $800 
and in the following year reduced the 
exemption to .$600. Surtaxes were as- 
sessed at 5 per cent on all incomes 
over $10,000. This particular tax 
drew revenue from more than 275,- 
000 individuals and netted the gov- 
ernment in excess of .$375,000,000, a 
small amount as compared with the 
enormous revenues collected today, 
and yet it sufficed as well as the col- 
lections of today. This law expired 
by limitation in 1871. 

In 1894, the next income tax law 
was passed by Congress, and in the 
following year the Supreme Court 
held that it was unconstitutional on 
the ground that it was a direct tax 
and as such, could only be levied if 
apportioned accordir.g to tlie popula- 
tion of the various states. 

In 1900 a Special Excise tax ap- 
plicable to corporations, at the rate 
of 1 per cent on entire net income 



over $5,000, received by corporations 
from all sources, was accepted by the 
Supreme Court as constitutional, and 
this tax remained in force until the 
Act of 1913 replaced it. 

In 1913, the sixteenth amendment 
to the Constitution was passed, pro- 
viding that Congress shall have the 
power to lay and collect taxes on in- 
come from whatever source derived, 
without apportionment among the 
several states and without regard to 
any census or enumeration. Immedi- 
ately after the ratification of this 
amendment. Congress began laying 
plans for an income tax law which 
was finally approved on October 3, 
3913, and effective from Mar. 1, 1913. 
TJiis law was held to be constitutional 
by the Supreme Court in the famous 
ease of Brushaber vs. Union Pacific 
R. R., although many of its Treasury 
Department i-ulings have not been up- 
held by the Supreme Bench. 

The personal exemption allowable 
in this tax levy was .$3000 for a single 
l)erson and $1000 extra in the case of 
a married taxpayer. It was applied to 
the incomes at the rate of 1 per cent, 
on net income and was gradually in- 
creased to 6 per cent on the incomes 
of $500,000 and over. This tax yield- 
ed $71,000,000 the first year and was 
collectible at source. Collectible at 
source is a novel feature of the tax 
and was probably copied from the 
English method of collection which 
required that all persons or corpora- 
tions paying to individuals, incomes 
in form of v/ages, interest, rent, etc., 
of $3000 or $1000 were required to 
(led net 1 i3e;r cent, tax from this 
j^monnt payable and turn it over to 
the Collector of taxes. This method 
of collection caused so much com- 
plaint that it was soon abandoned be- 
cause those to whom the duty of col- 
lection fell disliked the duty of col- 
lecting in thi.s manner. 

In 1916 the law of 1913 the was re- 
pealed and a new income tax levied 
on the taxpayer. The principle of 
the tax and application was about 
Ibe same as that of 1913 fundament- 
f;llv, and its purpo.se was merely to 
raise the rate of taxation from 1 per 
ce"t to 2 per cent, on small incomes 
and from 1 per cent to 13 per cent, 
on incomes of great volume. It may 
1 added that it also was revised to 



draw better distinctions and remodel 
those parts of the 1913 law that had 
caused so much friction. 

This particular tax yielded about 
$360,000,000 and yet such a sum was 
entirely inadequate to meet the tre- 
mendous expenses caused by our en- 
try in the war in 1917, consequently 
an act was passed in 1917 raising the 
tax rates to a level never before ap- 
proached in the history of taxation. 
The 1917 law which was passed on 
October 3, 1917 was merely a revision 
to the law of 1916 and by its radical 
changes in regard to exemptions being 
disallowed and lowered and wages in- 
creasing abnormally as money lost its 
old standard of exchange, we for the 
first time probably began to feel the 
effect of the income tax laws. A new 
normal tax rate of 2 per cent, was 
im]iosed on individuals and a rate of 
4 per cent levied on corporations, 
while surtaxes ranged from 1 per 
cent, to 50 per cent, on larger incomes 
with reference to their derivation. As 
you all know, the 1917 law reduced 
personal exemption of the working- 
man and all others to $1000 for a sin- 
gle person and $2000 for a married 
taxpayer, with various other exemp- 
tions such as $200 for each dependent 
child and so on. 

The rates levied against the indi- 
vidual taxpayer in the law of 1918 
were 6 per cent, applicable against in- 
come of .$4000 and under, with a nor- 
mal rate of 12 per cent, on income in 
excess of this amount. Corporations 
were taxed at the rate of 12 per cent, 
during this period and were further 
taxed on their excess profits. These 
rates, however, were of shoi't dnraticm 
and a revision followed, effective on 
January 1, 1919, wherein the individ- 
ual taxpayers were taxed on their in- 
come at the rate of 4 per cent, on the 
first $4000 and nnder, with a normal 
]"!te of 8 per cent, on income in excess 
of this amount. Corporations were 
taxed at the rate of 10 per cent, and 
the excess profit tax was still en- 
forced. 

The law of 1918 is still in effect 
^nnd many of you have felt its sting. 
As to the question of when it will be 
repealed, you know as much about it 
as we do, but our opinion is, that it 
v.'ill b(^ some time into the future be- 
Continued on Page 2, Col, 2. 



WADCO NEWS 



Wadco News 



Published Semi-Monthly 

by the Employees of Whitingf & Davis 

Company, Plainville, Mass. 



Publication Committee 

J. O. Gagfnon, Chairman 

W. M. Fuller Lee Higffins F. Gaddes 

O. Soderstrom II. B. Rowan 



Editor . . C. H. Peasley 

AssT. Editor, Catherine Kennedy 

COMMERCIAL PRESS- PR INTERS 



EDITORIALS 



Remember! 



March 1st — State returns must 
be filed. 

March 115 — Federal Returns must 
be filed. 



Answer to "Why Is This?" 



1. That the "intelligent bunch of 
people" have to go some to get ahead 
of Henry's girls who are all in line 
before the bell rings and ready for 
the hundred yard dash, and have no 
respect for old age. 

2. After rushing every day at 
piece work, it is a force of habit to 
keep on rushing. 

3. It is a pleasure to "hear" Ar- 
thur Plante start his car — when it is. 
"frozen up." 



When we went to school we did not 
jump over desks nor children to see 
who could reach the door first. We 
stood and let one aisle go out. Now, 
I think we could do something of that 
sort here. We are only children 
grown up (at least we are supposed 
to be). Why not stand up and go in 
turn to ring out. It would not take 
any longer than it does to jump and 
walk over Ihe others to the clock first. 
The car won't go until the crowd gets 
there. 



Dear Editor: Will you kindly cor- 
rect the mistake in your last issue. 
The price of the "Purring Motor" is 
$750 not $600.— (Signed) H. Crow- 
ther. 



Continued on Page 1, Col. 1. 

fore we can do without taxation by 
this method, unless some new and 
more practical scheme of taxation can 
be introduced to replace it, such as 
the 1 per cent. Sales Turn-over Tax. 
This entire article deals with the 
Federal Income Tax and should not 
be confused with the State Tax which 
you have just made out and forward- 
ed to the State Collector to be there 
on or before March 1, 1921. The 
Federal Tax is due to be returned by 
the 15tli of March and the accounting 
department will be at your service in 
rendering these returns should you 
so desire, and any questions not with- 
in their understanding will be refer- 
red to the Company's tax adviser. 



MIDDLEBORO NEWS 



Evelyn has a diamond 
Which to her is very dear, 
And Gladys had a shower 
So their honeymoon is near. 
Lucy has a hope chest. 
Will she hope in vain? 
Beatrice thinks a man 
Is very hard to gain. 
If she should ask the matrons 
Who have been through the mill, 
I know they'd surely tell her 
"There's a way, if there's a will." 

Frances dressed in a hurry, 

The result was surely "a scream," 

When she arrived one stocking was 

brown. 
The other a beautiful green. 
Hazel, she has whispered 
That "wedding bells we'll hear" 
But who he is, we wonder 
For we never see him near. 
Mildred's boudoir cap is missing. 
Now we always see her curls. 
Corina she is wearing 
A brand new string of pearls. 

Dora, she is love sick, 
And completely "on the blink," 
Annie's so industrious 
She hasn 't time to think. 
Marie savs "she's disgusted 
And on fellows is not keen." 
Sophia wears a new ring 
With stone of brilliant green. 
We miss Eulalia singing, 
For she has gone away. 
Peginald is so bashful. 
Not a word he dares to sav. 



Arthur's girl has vanished, 

So he's feeling pretty blue. 

Norman he is quiet and 

Sticks to work like glue. 

The Boss's look of sadness 

I wish that we could cure, 

That "he'll never, never smile again" 

We are often very sure. 

But then he is a genius. 

And many things can make. 

For the bed he built for his baby boy 

I'm sure would "take the cake." 

Charlie does not here belong. 
His place is in burlesque. 
So the tantalizing things he does 
We have to take in jest. 
If Johnny's heart should get on fire 
We'll ring "a still" alarm 
And expect his Plainville comrades 
To rescue him from harm. 
And Billy often tells us 
That "he has a wife at home. 
And if he does not now behave 
She'll whack him on the dome." 
— Hattie Goodwin. 



Horace originated the idea of wear- 
ing coarse cotton gloves while about 
his duties in the shop. Later he may 
affect clogs and dress suit. Then we 
will elect him to our minstrel troupe. 



Ed. Ilerlin took a trip in "The 
Green Dragon" to New York a lit- 
tle while ago. We would be interest- 
ed to know if he enjoyed the blow- 
outs. 



What an awful thing it would be if 
a pickpocket were to touch William 
Stevensen of the Gold Department. 
Bill is in the habit of carrying eight 
pints every day. Only milk ! 



The Repair Department has been 
moved into the corner shop where 
they have practically a little factory 
of their own with coloring, soldering, 
polishing and assembly departments. 
Arthur Boehnkee is foreman of the 
new factorv. 



Hector Coutu might not be much of 
a fox hunter but he has proved his 
ability as a fox-trotter. 



We hear that when Horace Cheever 
got a strike the other night, he pitch- 
ed the next two balls down the gut- 
ter. Taking pity on them, Horace? 



WADCO NEWS 



SPORTS 






THE HIMKy-D/NKS TAKE A 
TRIMMI nG: . 



Frank Brown, Editor. 

Our artist has spread on paper some 
of the scenes he saw at the great bas- 
ket ball game which took place be- 
tween the so-called Hinkey Dinks who 
represented the office force and the 
Hambones who represented the brains 
of the Die Sinkers. 

Those who were not there missed the 
times of their lives. There were times 
when the lives of some of the players 
were hanging in the balance. The hall 
was prettily decorated with potted 
plants, mostly of the Sir Arthur va- 
riety, in fact the entrance of the hall 
was more than guarded by a serious 
looking plant not very pretty to look 
at, but much alive when stirred up. 
Bill Barton for Hinkeys secured some 
strangle holds on various occasions but 
when Fulton got a scissors hold on 
Bill he gave up and took the count 
willingly. Sturge tried and tried 
again to make his big D assert itself, 
but he found that the going wa.s a 
little rough in spots for him. Ray 
Fulton was the star, having caged ten 
baskets during the struggle. He is 
very modest in his make-up and for 
that reason he let up in his play as 
he did not want to make the college 
boys look like pikers. 

The teams were made up as fol- 
lows : 

Hambones — Coutu, Fulton, Boyles, 
Bunch, Toothill, Clampitt, Waldron. 
Total 37. 

Hinkey Dinks — Mayshaw, Evans, 
Eice, Moegan. Osterholm, Manchester, 
Barton. Total 8. 



f-X2,::0 




THE OFFKSR FLPiNT-E 



r«f WAy B^/iToN leftThe: 
oRers/A/Q ROOM TVR Acriv/r/£s. 



CkN IT 8£ DONE A(lAlN — 



Archie Walden, who was the ref- 
eree, was surprised to see such talent 
as was shown in both teams, so look 
out, boys, he will be after some of you 
for his all-stars. 



Bowling still holds the athletes. 
The ladies of the Gold Mesh Depart- 
ment felt they had something they 
could put over on the Soldered Mesh 
girls, so they gave them a game with 
the following results: 



The Planning boys have been going 
along fine trimming all comers until 
the Polishers got after them, and they 
did the trick. Now they are not so 
proud as of vore. 

POLISHING ROOM 
Jilison, 93 97 91 271 

Poor, 83 86 92 261 

Lewouski, 79 97 90 266 

Barrows, 83 83 106 272 

Fawcette, 89 105 108 302 



GOLD MESH 



1372 



Seen on the Side Lines 



McClemmens, 
Curran, 
St. John, 
Passmore, 
Gilbert, 



60 67 53 170 

41 38 66 146 

57 51 62 no 

37 67 34 138 

47 66 31 145 



PLANNING ROOM 

Crotty, 91 103 92 286 

Spence, 96 70 78 244 

Manchester, 96 84 82 262 

Kenvon, 99 78 85 262 

Manchester, 101 85 111 297 



What was Officer Plant tring to do 
over in the corner? Put the handcuffs 
on Eva or were they only holding 
hands? 



769 



1351 



SOLDERED MESH 



Three cheers for our old assistant 
manager Bill Kenney for jumping in 
and furnishing music while the regu- 
lar orchestra were on their way. Did 
you notice Horace, he of the poisoned 
hands? He still wears cotton gloves 
and delights dancine with the young- 
er set. Oh, you kid ! 



Whiting, 


52 


52 


76 


180 


Larocque, 


56 


55 


55 


166 


Cooke, 


42 


42 


55 


139 


Oauvin, 


48 


36 


44 


128 


Babineau, 


65 


62 


73 


200 



This game was for a steak supper 
to be paid for by the losers. Fawcette 
is entitled to the first helping for his 
high string of 302. Gene and Ed 
showed some class for the planning 
boys, but could not polish off the 
lads from the shining department. 



813 

Miss Babineau was high for the 

Solderrd Mesh in the three-string 

totals apd Miss Whiting carried off 

Vr.o Imirrls for a single string of 76. 



And who said that our worthy edi- 
tor Vv^as a has been? Did you see 
^im do the Wiggle Woggle and the 
Yippor Yapper in the true mediaeval 
style? 



WADCO NEWS 



V 



CAUGHT IN THE MESH 



Echoes from Export 



You ask wliore wo are? Well I'll 

tell you, 
Over the wide, wide ocean, 
And across the rock,y bar. 
And the answer comes from far 

You ask what we are doing? 
"Well, all through the live long day 
AVe are cutting tags and wrapping 
And putting bags away, 

To be shipped to the far off countries. 
To the people strange and qiieer: 
To the men and women and children 
To fill their hearts with cheer. 

And now we ask you to hurry 
Ail of our bags along 
And thereby relieve us of worry, 
So things won't all go wrong. 

'Tis only a little we'er asking, 
And we hope you will grant us this 
To aid the packers and shippers 
And help complete our list. 

And so with a Avill we are working 
Like each and every department, 
And we hope you will hear through 

out the year 
Eelioes from the Foreign Department. 



We are liegiiining to think there 
will be another (Mrs.) added to the 
I Jisoldered I\Iesh Department if Ed- 
die R. of the tool room doesn't stop 
hanging around Violetta. 



The unsoldered mesh girls are won- 
dering wliy the editor often pa.sses 
tlumi by without any comment in the 
paper. They say if he would keep 
I)is eyes open he would see enough to 
fill the back page. Ask Blanche and 
liillie. And our little "inspeetress" 
witli her " violet" eyes can certainly 
find mistakes that keep Henry guess- 
ine whether he will put some one else 
on the job or rot. 



Who is it tliat walks on his heels 
ill the Planning Dept.? B. B. — to save 
liis soul (sole). 



Valentine Party 



The Valentine Party and Supper 
held by the OfS.ee, Planning, Foreign 
and Re]nur Departments sure was the 
big event of the season. The table 
was prettily decorated, with favors 
'n everythin', and justice was done to 
the supper served by Mr. Olsen, even 
thougJi it was interrupted by the 
spasms of laughter caused by the 
' ' Yes ' ' and. " No " game which was in 
progress all evening. How they did 
liate to part with their arrows ! Other 
games followed fully as interesting, 
and the party was complete even to 
the music, dancing and chorus girls. 
The fun lasted until a late hour, and 
all expressed their appreciation to the 
social committee, and JMr. Wliiting, 
who so kindly allowed the use of the 
restaurant. 



Our worthy Editor has, no doubt, 
received many, funny or otherwise, 
answers to the query in the last edi- 
tion of the Wadco News, why our em- 
ployers will risk life and limb to get 
to the time clock. 

Now if we consider similar cases in 
every-day life we find that it is only 
a natural impulse mo.st of us indulge 
in. It is not so much the desire to 
be out of the shop or ofiice, but that 
latent spirit of rivalry, that wishes to 
be first, whenever we are conscious of 
(he fact that someone else is trying to 
"get ahead" of us, that makes us act 
in the manner noted. 

In' conclusion notwithstanding: 
what some wiseacres might claim, it 
is lot so much the wish to be out of 
the shop that should be empliasized, 
l:ut the fact that after a day's work 
we are still so full of spirit, that we 
sprint up the aisle, down the stairs, 
challencre a friend to a game of pool 
or perhaps make a date wiih a lady 
fair. Look us oveV right and you fir.d 
there is a reason in mo.st everything 
v.-e do. 

P. J. S. 



Lil'.s motto is — "Let George do it.'" 



Gagnon would be very gird to kr.ow 
what liappered to his can of soap one 
night a week or two a?o. Perhaps a 
certain tool-maker could tell him. 



Everett Davis is working in the 
Shorbrooke factory for a few months. 

Chester Anderson spent a couple of 
weeks in Chicago at the "Fashion 
Show" for the Company. 



Dandekian was married Feb. 5, in 
Fitcliburg. The Mesh Department 
presented him with a large oak dining 
room table. 



Alfred Chabot, night foreman of 
the Mesh Department, was taken to 
the Bristol Country Sanatorium a few 
weeks ago. He is reported as resting 
comfortablv. 



iilrs. F. Wolle of the Joining Ma- 
chine Department has been taken to 
the ililford Ho.spital for appendici- 
tis. 



The Joining Department has moved 
into their new quarters. 



I fail to see why the editor wants 
an answer to the question on the front 
page when he has already answered 
it himself. AYe are ruled by our hab- 
its. It is a habit. — Irene Blanchard. 



SJie — "I dont like j'ou, Al, when 
you wear a red necktie." 

He — "Alriffht, I'll buv a gross of 
them." 



Anyone wishing to have their house 
cleaned apply to Byron Gardner. The 
Chain Company will give him a good 
reference. 



It gave Catherine Kennedy a ter- 
rible appetite to see "Apple Blos- 
soms." She had to stay in town for 
supper, which consisted of a dough- 
nut and a cup of coflFee. 



Dan Crotty learned something 
about Sloan's Liniment, as well as 
about hockev the other dav. 



Someone asked Frank ^lurphy if 
irs folks were well-to-do. "No, they 
are hard to do." rejiliod Frank. 



John Killian. of the Chain Com- 
r.iny, went to New York recently on 
business for the firm.